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26
Revenues —
The decrease in total revenues resulted from the following sources:
Revenues by Type of Service
Distribution services
Generation:
Retail
Wholesale
Total generation sales
Transmission
Other
Total Revenues
2010
(In millions)
$ 3,629
4,457
702
5,159
596
326
$ 9,710
2009
$ 3,419
5,764
752
6,516
805
176
$ 10,916
Increase
(Decrease)
$ 210
(1,307)
(50)
(1,357)
(209)
150
$ (1,206)
The increase in distribution deliveries by customer class is summarized in the following table:
Electric Distribution MWH Deliveries
Residential
Commercial
Industrial
Total Distribution MWH Deliveries
Increase
5.9%
2.8%
8.4%
5.6%
Higher deliveries to residential and commercial customers reflect increased weather-related usage due to a 70% increase in cooling
degree days in 2010 compared to 2009, partially offset by a 4% decrease in heating degree days for the same period. In the industrial
sector, MWH deliveries increased primarily to major automotive customers (16%), refinery customers (7%) and steel customers
(38%). The increase in distribution service revenues also reflects Met-Ed's, Penelec's and Penn's recovery of the Pennsylvania
EE&C as approved by the PPUC in March 2010 and the accelerated recovery of deferred distribution costs in Ohio, partially offset
by a reduction in the transition rate for CEI effective June 1, 2009.
The following table summarizes the price and volume factors contributing to the $1.4 billion decrease in generation revenues in
2010 compared to 2009:
Source of Change in Generation Revenues
Retail:
Effect of decrease in sales volumes
Change in prices
Wholesale:
Effect of decrease in sales volumes
Change in prices
Net Decrease in Generation Revenues
Increase
(Decrease)
(In millions)
$ (1,435)
128
(1,307)
(64)
14
(50)
$ (1,357)
The decrease in retail generation sales volumes was primarily due to an increase in customer shopping in the Ohio Companies’
service territories. Total generation MWH provided by alternative suppliers as a percentage of total MWH deliveries by the Ohio
Companies increased to 62% in 2010 from 17% in 2009.
The decrease in wholesale generation revenues reflected lower RPM revenues for Met-Ed and Penelec in the PJM market.
Transmission revenues decreased $209 million primarily due to the termination of the Ohio Companies’ transmission tariff effective
June 1, 2009; transmission costs are now a component of the cost of generation established under the May 2009 Ohio CBP.
Other revenues increased by $150 million primarily due to Met-Ed's and Penelec's PSA with FES in 2010, resulting in increased
capacity revenues.